Alcohol Distributors Lose Their Appeal for Marijuana Monopoly in Nevada

It appears that Nevada officials are getting tired of the state’s alcohol wholesalers holding back the newfound recreational marijuana market.

On Tuesday, the state’s Tax Commission denied an appeal brought forth by a small group of liquor distributors calling for exclusive rights to the distribution of recreational marijuana.

A report from the Las Vegas Review-Journal indicates that the commission has voted to maintain its previous position on the matter and issue licenses to other business outside of the alcohol trade.

The fight over who should transport marijuana from growers to retail facilities has been going on for months, and although the voter-approved initiative that legalized recreational marijuana technically gives the alcohol distributors exclusive rights to the distribution process for the first 18 months, state officials say there are not enough of them to do the job efficiently.

As it stands, there are only six, licensed marijuana distributors stocking the shelves of dispensaries all across Nevada. Lawyers with the alcohol distributors have leaned on the courts to prevent the state from doling out any addition licenses unless the applicant also slings booze.

However, a recent court ruling gave the state the authority to move ahead with its plan to issue more licenses. The judge decided there was overwhelming evidence that the liquor distributors alone do not have the ability to properly service the cannabis industry.

Unfortunately, the alcohol distributors still have some fight left in them. The group has since appealed to the state's Supreme Court in hopes of having the judge’s decision overturned.